Brooklyn Woman Sentenced To Three Years In Prison For COVID-19 Fraud Scheme And Fraud On NYCHA (Press Release)

Summary

A press release from the U.S. Attorney's Office, Southern District of New York, dated February 8, 2024, announcing that Chanette Lewis was sentenced by U.S. District Judge Lewis A. Kaplan to three years in prison, three years of supervised release, forfeiture of $289,536 and restitution of $360,330. According to the allegations described in the release, Lewis defrauded New York City's COVID-19 Hotel Room Isolation Program, including by selling at least approximately 1,936 nights of hotel rooms to ineligible customers, and obtained approximately $47,000 in unemployment benefits. It states that Lewis also submitted fabricated documents to the New York City Housing Authority (NYCHA) for more than approximately 30 individuals. Co-defendants Tatiana Benjamin and Heaven West were sentenced on February 1, 2024.

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PRESS RELEASE



Brooklyn Woman Sentenced To
Three Years In Prison For COVID-
19 Fraud Scheme And Fraud On
NYCHA
Thursday, February 8, 2024

For Immediate Release
U.S. Attorney's Office, Southern District of New York

Damian Williams, the United States Attorney for the Southern District of New York,
announced that CHANETTE LEWIS was sentenced today to three years in prison for her
role in two fraud schemes. LEWIS participated in a scheme to commit COVID-19
pandemic fraud by (i) defrauding New York City’s COVID-19 Hotel Room Isolation
Program, and (ii) committing unemployment benefits fraud. LEWIS also committed a
fraud in which she submitted fabricated documents to the New York City Housing
Authority (“NYCHA”) — such as purported Orders of Protection bearing Judges’ names,
purported letters from a District Attorney, and purported letters from healthcare
professionals attesting to alleged medical issues — in order to secure public housing
benefits for her customers. LEWIS’s sentence was imposed by U.S. District Judge Lewis A.
Kaplan.

U.S. Attorney Damian Williams said: “Chanette Lewis exploited
multiple lifelines offered to New York City residents in need during the
COVID-19 pandemic. Each of her schemes misappropriated
identifying information of hardworking individuals, including medical
professionals whose services were vital during the pandemic. For her
brazen crimes, Lewis has now been sentenced to prison.”
According to the allegations contained in the Superseding Information, court filings, and
statements made during court proceedings:

                        LEWIS’s COVID-19 Pandemic Fraud Scheme
During 2020 and 2021, LEWIS conspired to commit COVID-19 pandemic fraud in two
ways.

First, LEWIS defrauded the COVID-19 Hotel Room Isolation Program (the “Program”). In
response to the COVID-19 pandemic, New York City created the Program. Funded by
New York City and the Federal Emergency Management Agency, the Program provided
free hotel rooms for qualifying individuals throughout New York City. In total, the
Program was open to (i) healthcare workers who needed to isolate because of exposure
to COVID-19; (ii) patients who had tested positive for COVID-19; (iii) individuals who
believed, based on their symptoms, that they were infected with COVID-19; and (iv)
individuals who lived with someone who contracted COVID-19. As stated on the City’s
website describing the Program, such individuals “may qualify to self-isolate in a hotel,
free of charge, for up to 14 days if you do not have a safe place to self-isolate.” Those
who wished to book a hotel room through the Program could either call a phone number
or use an online hotel booking platform.

LEWIS defrauded the Program in several respects. First, she secured free Program hotel
rooms for herself by falsely claiming to be a healthcare worker. Second, she sold at least
approximately 1,936 nights’ worth of fraudulently obtained hotel rooms to customers who
were ineligible for the Program. Third, LEWIS abused her employment, which was
supposed to be in service of the Program. Specifically, LEWIS worked at a call center that
handled phone calls and certain reservations for the Program for several months in
2020. As a result of her employment, LEWIS had access to legitimate healthcare workers’
identifying information. LEWIS abused her position, including by misappropriating
healthcare workers’ identifying information, revealing the Program’s inner workings to co-
conspirators, and making unauthorized sales of Program hotel rooms to ineligible
individuals. For instance, LEWIS sold a co-defendant personal identifying information of
at least five healthcare professionals, as well as certain “codes” to use when booking hotel
reservations through the Program, such as an employee ID number and license
number. LEWIS also advertised to potential customers that when hotels asked for a
healthcare worker’s identification, LEWIS would supply a purported paystub and a letter
falsely asserting that the individual was a healthcare worker.

Second, during 2020 and 2021, LEWIS committed unemployment benefits fraud in New
York State by fraudulently obtaining such benefits for herself and also by stealing the
identity of an incarcerated individual and conspiring to obtain unemployment benefits
issued for the benefit of that individual. In total, LEWIS fraudulently obtained
approximately $47,000 in unemployment benefits.

                                LEWIS’s Fraud on NYCHA
During 2020 and 2021, LEWIS participated in a separate conspiracy to defraud
NYCHA. LEWIS submitted fabricated documents to NYCHA — such as purported Orders
of Protection bearing Judges’ names, purported letters from a District Attorney, and
purported letters from doctors attesting to alleged medical issues — in order to secure
public housing benefits for her customers, including transfers to larger NYCHA
apartments. In total, LEWIS submitted fraudulent applications to NYCHA on behalf of
more than approximately 30 individuals, a number of whom in fact received the public
housing benefit they requested based on fraudulent documentation submitted by LEWIS.

                                 *          *           *

In addition to her prison term, LEWIS, 32, of Brooklyn, New York, was sentenced to three
years of supervised release and ordered to forfeit $289,536 and to pay restitution of
$360,330.

LEWIS’s three co-defendants — Tatiana Benjamin, Tatiana Daniel, and Heaven West —
previously pled guilty. On February 1, 2024, Benjamin was sentenced principally to one
year and one day in prison, three years of supervised release, restitution of $294,624, and
forfeiture of $51,088; and West was sentenced principally to time served, three years of
supervised release, restitution of $59,644, and forfeiture of $23,684. Daniel’s sentencing
is scheduled for March 6, 2024, at 11:30 a.m.

Mr. Williams praised the outstanding efforts of agents, investigators, and analysts from
the New York City Department of Investigation, the New York Regional Office of the U.S.
Department of Labor – Office of Inspector General (“DOL-OIG”), and the U.S. Attorney’s
Office for the Southern District of New York. Mr. Williams also thanked the New York/New
Jersey High Intensity Drug Trafficking Area Intelligence Analysts for their support and
assistance in this investigation. He also expressed gratitude to the New York City Police
Department, the New York State Department of Labor, and the DOL-OIG Atlanta Regional
Office for their assistance.

This matter is being handled by the Office’s Complex Frauds and Cybercrime
Unit. Assistant U.S. Attorney Michael D. Neff is in charge of the prosecution.

Contact
Nicholas Biase, Lauren Scarff
(212) 637-2600

Updated February 8, 2024

Topics
CORONAVIRUS

FINANCIAL FRAUD


Component
USAO - New York, Southern
Press Release Number: 24-046


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